QUESTION 3 A monopolist faces the demand curve Q = 11 - P where P is measured in dollars per unit and Q in thousands of units. The monopolist has a...

QUESTION 3A monopolist faces the demand curve Q = 11 – P where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $6 per unit.a) Draw the average and marginal revenue curves and the average and marginal cost curves.b) What are the monopolist’s profit-maximizing price and quantity?c) What is the resulting profit?Sol: (3)Because demand (average revenue) may be described as P = 11 ­ Q, we know thatthe marginal revenue function is MR = 11 ­ 2Q. We also know that if average costis constant, then marginal...